Huobi Research Weekly(Vol.86)

Abstract

This week, the overall market capitalization for the top 100 cryptocurrencies decreased of 3.46%, with 45 projects increased in value to varying degrees. According to coinmarketcap, as of November 3, 2019, the total market cap of cryptocurrencies was 246,8 billion U.S. dollars, decreased by 3.46%, and the total market cap of the top 100 cryptocurrencies was 243,5 billion U.S. dollars, increased by 2.27% from last week. 3 cryptocurrency projects entered the top 100 this week, namely Chiliz 、iExec RLC、Zilliqa. As of November 3, 2019, Bitcoin was traded at 9235.35 USD, 3.3% lower than its price last week. Ethereum was traded at 182.43 USD, decreased by 1%. The market segment distribution of the top 100 cryptocurrencies remained stable.

This week, the Hashrate of Bitcoin decreased and the Hashrate of Ethereum increased. The difficulty of mining Bitcoin and the difficulty of mining Ethereum both increased. The average number of transactions per block of Bitcoin and the average block size of Bitcoin both increased. The average number of transactions per block of Ethereum increased and the average block size of Ethereum both decreased. The average transaction fees of Bitcoin decreased and the average transaction fees of Ethereum increased. INS was the most active project on GitHub this week.

Bitcoin’s Hashrate was 88.7EH/s, decreased by 11.42% from last week and Ethereum’s Hashrate was 184.12TH/s, increased by 2.95% last week. The difficulty of mining Bitcoin was 13.691T, increased by 2.87% from last week. The average difficulty of mining Ethereum this week was 2427.241T, increased by 0.45% from that of previous week.

In network activity, the average number of transactions per block of Bitcoin increased and the average block size of Bitcoin increased. The average number of transactions per block of Ethereum increased and the average block size of Ethereum decreased this week. As of November 3rd, 2019, the average transaction fees on the Bitcoin network this week was $0.819, decreased by 34.27% from last week. The average transaction fees on the Ethereum network this week was $0.132, increased by 4.76%. Total number of addresses on the Blockchain and Ethereum network reached 43.03 million and 76.92 million, increased 0.17(0.4%) million and 0.50(0.66%) million respectively. INS was the most active project on GitHub this week, with 48 commits submitted in the past week.

In terms of community activity, Tron, Bitcoin and Ethereum are the most popular communities on Facebook. On Twitter, the most popular communities are Bitcoin, Ripple and Tron.

3 investment activities took place in the blockchain industry this week, Jiemoquan got strategic investment, TokenHand got Pre-A round investment, Bibox got strategic investment.

1. Weekly Market Review

1.1 Market overview

This week, the overall market capitalization for the top 100 cryptocurrencies decreased of 3.46%, with 45 projects increased in value to varying degrees. According to coinmarketcap, as of November 3rd, 2019, the total market cap of cryptocurrencies was 246.8 billion U.S. dollars, decreased by 3.46%, and the total market cap of the top 100 cryptocurrencies was 243.5 billion U.S. dollars, decreased by 2.27% from last week, among which, Chiliz had the largest increased of 66.08%, bringing its market cap ranking from №131 to №90, MEXC Token had the largest decreased of -64.98%, bringing its market cap ranking from №22 to №39. In addition, there were 3 projects that entered TOP100, namely, Chiliz(CHZ, Now №90), iExec RLC(RIF, Now №96), Zilliqa(ZIL, increased 5.01%, from №102 to №99). As of November 3rd, 2019, Bitcoin was traded at 9235.35 USD, 3.3% lower than its price last week. Ethereum was traded at 184.43 USD, 1% lower than its price last week.

The overall 24h trading volume decreased this week. Overall, the 24h trading volume decreased by 34.56% compared with the same period of last week. In this week, 25 of the top 100 projects increased in 24h trading volume, among which, 16 of the top 100 projects increased by more than 20% in 24h trading volume, 13 of the top 100 projects increased by more than 50% in 24h trading volume, led by ENJ with a weekly increase of 3682.41%; there were 75 projects decreased in their 24h trading volume, there were 56 projects that saw over 20% decrease in their 24h trading volume, while 24 projects fell by more than 50%, led by STEMM, with a decreased of 98.71%.

Figure 1.1: The Market cap and 24-hour Trading Volume for TOP100 cryptocurrencies

Source: coinmarketcap

The top 10 cryptocurrencies’ market value increased, the market share distribution remained stable. On November 3rd, 2019, the overall market cap of the top 10 cryptocurrencies was 2219.73 billion USD, decreased by 2.46% from last week, accounting for 89.94% of the total market capitalization of cryptocurrencies, increased by 1.04% from last week. The market value proportion of TOP10 project basically stable. BTC’s dominance was 67.45%, increased by 0.15% from last week.

Figure 1.2: TOP10 Cryptocurrencies’ Market Share of Total Cryptocurrencies Market

Source: coinmarketcap

Figure 1.3: TOP10 Cryptocurrencies’ Market Share of Total Cryptocurrencies Market Changes

Source: coinmarketcap

1.2 Segment Analysis

Among TOP 100 cryptocurrency project segments, the total market cap of application project and the average market cap of coin projects got the largest increase. As of November 3rd, 2019,the total market cap of coin projects reached 1855.27 billion USD, decreased by 2.91%. The average market cap of coin projects reached 4.88billion USD, increased by 4.76%. The total market cap of platform projects reached 29.49 billion USD, decreased by 1.05%. The average market cap of platform projects reached 1.05 billion USD, decreased by 4.58%. The total market cap of application class projects reached 23.93 billion USD, increased by 0.89%. The average market cap of application class projects reached 8.25 billion USD, decreased by 6.07%. The total market cap of asset-backed token projects reached 4.62 billion USD, increased by 0.11%. The average market cap of asset-backed token projects reached 0.92 billion USD, increased by 0.11%.

Figure 1.4: TOP100 Cryptocurrencies Market Segment Capitalization

Source: coinmarketcap

Figure 1.5: TOP100 Cryptocurrencies Segment Average Market Cap

Source: coinmarketcap

The market segment distribution of the top 100 cryptocurrencies remained stable. As of November 3rd, 2019, among the top 100 projects, the number of coin class projects deceased 3, application class projects increased 2, platform class projects increased 1 and asset-backed token class remained the same. The largest overall market cap by segment was still coin projects, accounting for 76.17% of the total market cap of top 100 projects.

Note: According to the different attributes of cryptocurrencies, Huobi Academy of Blockchain Application will divide them into four categories: Coin, Application Class, Platform Class and Asset-backed Token.

Coin Project: Refers to a type of asset developed based on blockchain technology that does not correspond to a specific use scenario and whose main function is only the transaction target. Its asset value is mainly reflected by liquidity.

Platform Class Project: A type of asset that is associated with the development of the underlying technology of the blockchain and is supported by the right to use or participate in the platform.

Application Class Project: Refers to a type of asset that is associated with a specific application scenario and is supported by a certain right of use, participation, or dividend.

Asset-backed Project: Refers to a class of assets that is linked to actual assets such as gold and US dollars and supported by the value of physical assets.

2. Technical Statistics

2.1 Cryptocurrency Mining Statistics

The hashrate of Bitcoin decreased and the hashrate of Ethereum increased by this week. From October 28th, 2019 — November 3rd, 2019, the average bitcoin Hashrate for the entire network reached 88.67 EH/s, decreased by 11.42% from the previous week.

Average Hashrate for the entire Ethereum network was 184.12TH/s this week, increased by 2.95%.

Figure 2.1: Bitcoin Hashrate Changes

Source: blockchain.info

Figure 2.2: Ethereum Hashrate Changes

Source: etherchain

This week, the difficulty of mining Bitcoin increased and the difficulty of mining Ethereum increased. As of November 3rd 2019, average difficulty for mining Bitcoin this week was 13.691T, increased by 2.87% from last week. The average difficulty of mining Ethereum this week was 2427.241TH, increased by 0.45% from that of previous week.

The number of blocks in Bitcoin decreased by 8.14%. Top 5 rankings remained the same. The overall distribution of the Ethereum mining pools rankings remain the same, the number of blocks dereased 0.05%. In the past week, Bitcoin mined 937 blocks, decreased 8.14% from the previous week. Among the top five pools were Poolin, F2Pool, BTC.com, AntPool, Unknown these 5 pools mined 176, 149, 140, 100 and 77 blocks respectively, accounting for 18.78%, 15.90%, 14.94%, 10.67% and 8.22% of all Bitcoins mined this week. The Hashrate was 17.10EH/s, 14.48EH/s, 13.61EH/s, 9.72EH/s and 7.48EH/s respectively.

In the past week, Ethereu’s entire network mined 46023 blocks, decreased 0.05% from the previous week. The top five pools were SparkPool, Ethermine, F2pool_2, Nanopool and Zhizhu.top, each mined 13610, 10662, 5015, 3898 and 2223 blocks respectively, accounting for 29.572%, 23.16%, 10.89%, 8.46% and 4.83% of all Ethereum mined this week, respectively.

Figure 2.5: Distribution of Bitcoin Mine Pool

Source:BTC.com

Figure 2.6: Distribution of Ethereum Mine Pool

Source:etherscan.io

2.2 Activity Statistics

The average number of transactions per block increased and the average block size of Bitcoin both increased. The average number of transactions per block increased and the average block size of Ethereum decreased this week. According to blockchain.info, from October 28th, 2019-November 3rd, 2019, the average size of each block was 1.12MB, increased 7.69% form last week; there were on average 2283 transactions recorded in each block, increased by 5.5 from the previous week.

According to etherscan, the average number of transactions per block in Ethereum this week was 113.1, decreased by 3.33%. The average size of each block was 20478 bytes, increased by 9.13% compared to last week.

Number of unconfirmed transactions in Bitcoin decreased by 5.23%. Number of unconfirmed transactions in Ethereum decreased by 9.51% from the previous week. As of November 3rd, 2019, the number of 7-day average unconfirmed transactions in Bitcoin network was 6736, decreased by 5.23% from last week. There were 36382.57 unconfirmed transactions in the Ethereum network, decreased by 9.51% from last week, with the lowest amount of unconfirmed transactions in the week being 13357 and the highest amount being 40575.

Figure 2.11: Unconfirmed Transaction in Bitcoin

Source: blockchain.info

Figure 2.12: Unconfirmed Transaction in Ethereum

Source:etherscan.io

Total transaction fees of Bitcoin decreased. Total transaction fees of Ethereum increased. As of November 3rd, 2019, average transaction fees of Bitcoin this week was $0.819, decreased by 34.27% from last week. Average transaction fees of Ethereum this week was $0.132, incresead by 4.76%.

Figure 2.13: Bitcoin, Ethereum Average Transaction Fees

Source:bitinfocharts

The average number of distinct miners per day in Ethereum decreased by 1.96% from last week. From October 28th, 2019-November 3rd, 2019, the average number of distinct miners per day in Ethereum this week was 57, decreased 1.96% from last week.

Figure 2.14: Number of Distinct Miners Per Day

Source:etherchain

The number of nodes in Bitcoin increased and the number of Ethereum increased this week. As of November 3rd, 2019, there were 9555 Bitcoin nodes, increased by 2.55% compared to last week, of which 2469 nodes were in the U.S, 1899 nodes were in Germany, and 241 nodes were in China(№8), each accounting for 25.69%, 20.32% and 2.07% of the total number of Bitcoin nodes, respectively.

As of November 3rd, 2019, there were 7456 Ethereum nodes, increased by 0.68% from the previous week. Specifically, there were1990 nodes in the U.S, 1163 nodes in China, and 664 nodes in Germany, each accounting for 26.69%, 15.60%, 8.91% of total number of nodes, respectively.

Figure 2.15: Bitcoin nodes ranking

Source:bitnodes

Figure 2.16: Ethereum nodes ranking

Source:Ethernodes

This week, the growth rate for new addresses of Bitcoin and Ethereum both increased. According to the data on blockchain.info, as of November 3rd, 2019, the total number of Blockchain accounts reached 43032715, increased by 169532 (0.4%) this week.

According to the data on etherchain, as of November 3rd, 2019, the total number of Ethereum addresses was 76923517 increased by 500982(0.66%) this week.

INS was the most active project on GitHub this week. From October 28th, 2019-November 3rd, 2019, INS was the active project repository on GitHub with a total of 48 commits.

Figure 2.19: GitHub Code Activity

Source:cryptomiso

2.3 Community Activity Statistics

The top three most popular cryptocurrencies on Facebook were Tron, Bitcoin and Ethereum in descending order, with 976k, 502k and 156k fans respectively. The top three most popular cryptocurrencies on Twitter were Bitcoin, Ripple(XRP) and TRON, with 990k, 942k, and 481k followers, respectively.

3. Weekly Blockchain News Review

3.1 Industrial Application

1. China’s Tech Capital Shenzhen Issues 10 Millionth Blockchain invoice

Over 10 million blockchain-based invoices have been issued in Chinese tech capital Shenzhen, according to the Shenzhen Tax Service, as reported by English-language local news outlet Xinhuanet on Nov. 1. The tax agency also noted that the city is also actively promoting blockchain-enabled electronic billing. Shenzhen’s blockchain invoice system is reportedly developed by Chinese internet giant Tencent — the developer of the social media platform WeChat — together with the tax bureau of Shenzhen.The news comes a week after Chinese President Xi Jinping urged the country to accelerate blockchain adoption, calling the technology “an important breakthrough for independent innovation of core technologies.”Over 7,600 companies have used the system with the invoices comprising a total value of over 7 billion yuan (nearly $995 million), according to Xinhuanet. The blockchain invoicing service has been so-far applied in local finance, insurance, retail, hotel catering and parking services.

https://cointelegraph.com/news/chinas-tech-capital-shenzhen-issues-10-millionth-blockchain-invoice

2. Zilliqa Offers $5M Fund to Oxford DLT Students to Support Diversity

Singapore-based blockchain firm Zilliqa launches blockchain workshops in collaboration with Oxford University to encourage diversity in the industry.Together with Zilliqa, the Oxford Women in Computer Science Society (OxWoCS), an Oxford society that aims to support women in computer science, will carry out a series of interactive workshops called Blockchain A-Z, according to a press release shared with Cointelegraph on Oct. 31.As part of Demo Day on Nov. 21, the best students will be invited to submit their projects to acquire a grant from Zilliqa’s $5 million Ecosystem Grant Programme for further mentorship.

https://cointelegraph.com/news/zilliqa-offers-5m-fund-to-oxford-dlt-students-to-support-diversity

3. TZERO to Tokenize $25M of Luxury Residential Development in UK

Overstock’s blockchain arm tZERO will provide its technology to tokenize River Plaza, a luxury residential development in Manchester, United Kingdom.Following a partnership with U.K.-based real estate investment firm Alliance Investments, tZERO plans to tokenize at least $25 million of River Plaza on the Tezos blockchain, according to a press release on Oct. 30.A 180-unit luxury residential development, River Plaza is the first initiative of Alliance Investments’ real estate tokenization plan to tokenize around $640 million of real estate projects across the U.K. over the next several years. The security token offering is expected to launch in Q1 2020.

https://cointelegraph.com/news/tzero-to-tokenize-25m-of-luxury-residential-development-in-uk

4. Deloitte Integrates QEDIT’s Privacy Tech Into Its Blockchain Platform

Big four auditing firm Deloitte integrated the privacy developed by cryptography startup QEDIT into its qualification information blockchain platform Eduscrypt, a press release shared with Cointelegraph on Oct. 29 reveals.Per the release, the announcement was made at the ZKProof Community Event in Amsterdam today.The event was dedicated to Zero Knowledge Proofs (ZK-Proofs), an advanced kind of cryptography — which QEDIT’s solution uses — that allows to verify data without actually revealing it. The platform that has been updated to enhance its privacy is Deloitte’s Eduscrypt, and its purpose is to enable organizations to track, share, and validate the qualifications of staff.

https://cointelegraph.com/news/deloitte-integrates-qedits-privacy-tech-into-its-blockchain-platform

5. Samsung Integrates Tron and Mobile-Compatible DApp Building Tools

South Korean technology conglomerate Samsung has integrated Tron (TRX) support to its decentralized app (DApp) store, Blockchain Keystore. According to a release note published on Oct. 29 to the Samsung Developers website, Samsung Blockchain Keystore SDK v1.2.0 now includes APIs that support TRX transactions.Samsung has revealed it is today announcing its Samsung Blockchain Platform SDK at the Samsung Developer Conference 2019. The new SDK will reportedly tackle the two-fold challenge of bolstering security and building mobile-compatible DApps.As commentators have been swift to claim, the new Tron integration means that APIs for all tokens conforming to the TRC10 or 20 standards — as well as Tron-based DApps — are poised to become accessible to anyone with the Blockchain Keystore among Samsung’s near-one billion global smartphone user base.

https://cointelegraph.com/news/samsung-integrates-tron-and-mobile-compatible-dapp-building-tools

3.2 International Policies

1. Belgian Regulator Blacklists Another 9 Crypto Websites Suspected of Fraud

Belgium’s Financial Services and Markets Authority (FSMA) has made an additional update to its blacklist of cryptocurrency-related websites associated with fraud.On Oct. 29, Belgium’s financial watchdog updated its list of cryptocurrency trading platforms for which it has detected indications of fraud, by adding nine new suspect sites, bringing the total of suspected crypto scams to 131.The financial authority said that it continued to receive new complaints from consumers who made crypto investments on those trading platforms, adding that cryptocurrency fraud continues to find new victims in Belgium, despite prior warnings.

https://cointelegraph.com/news/belgian-regulator-blacklists-another-9-crypto-websites-suspected-of-fraud

2. 21 Crypto Exchanges Ask for License From Malta’s Financial Watchdog

The Malta Financial Services Authority (MFSA) has received queries from

21 cryptocurrency exchanges seeking licensure under the Virtual Financial

Assets (VFA) Act.According to an official announcement on Nov. 1, the 21

exchanges are among the 34 prospective VFA service providers that sent

their letters of intent to the Maltese financial regulator in order to acquire a

VFA Services Licence.The MFSA clarified that, until Oct. 31, crypto

providers have been operating under the transitory provisions specified in

Article 62 of the VFA Act. In order to continue their operations in or from

Malta, those firms will be now required to apply for authorization with the

MFSA.

https://cointelegraph.com/news/21-crypto-exchanges-ask-for-license-from-maltas-financial-watchdog

3. NY Court Orders Veritaseum to Pay Back $8 Million From Illegal ICO

The CEO of Delaware-registered blockchain firm Veritaseum LLC and

New York-registered Veritaseum Inc., Reggie Middleton, was ordered to

pay $8.4 million in disgorgement, according to a new court order.

Additionally, Middleton is liable for a civil penalty of $1 million, fintech

publication FinanceFeeds reported on Nov. 1, citing a court order issued on

Oct. 31.According to the report, a judge at the New York Eastern District

Court has approved a motion for a consent judgment in a securities fraud

case against several defendants involved in Veritaseum. Specifically, the

defendants are jointly liable for disgorgement of $7,891,600, which

represents a part of illegally earned profits as well as prejudgment interest

amount of $582,535.Moreover, the report states that the defendants will not

be allowed to engage in any offering of digital security, in accordance with

the court order.

https://cointelegraph.com/news/ny-court-orders-veritaseum-to-pay-back-8-million-from-illegal-ico

4. Swiss Crypto Bank Gets Approved for Singapore Banking License

Swiss-based cryptocurrency bank Sygnum has received the go-ahead to offer banking services in Singapore.In a blog post on Oct. 31, Sygnum, which gained a Swiss banking license in August this year, can now proceed with its first product for the Singapore market.Sygnum was the first Swiss company to win the title of cryptocurrency bank and will target accredited investors and institutions with a multi-manager fund, which will also debut in its home jurisdiction.

https://cointelegraph.com/news/swiss-crypto-bank-gets-approved-for-singapore-banking-license

3.3 Technological Breakthrough

1. CasperLabs Shows First ‘Provably Safe’ Ethereum PoS Protocol ‘Hightway’

Ethereum development firm CasperLabs announced “Highway,” allegedly the first correct-by-construction Casper Proof of Stake (PoS) implementation that is provably live and safe.According to a press release shared with Cointelegraph on Nov. 1, a protocol is safe if it is consistent in its decision and live if it guarantees a decision. CasperLabs claims that both those features are part of Highway and that their presence is provable. The firm also released a full research paper concerning the project.Casper is the name given to Ethereum’s PoS implementation and Highway — this particular version — has been released as open-source software. The first version of the protocol came out in May of last year.

https://cointelegraph.com/news/casperlabs-shows-first-provably-safe-ethereum-pos-protocol-highway

4.Weekly Investment Activities

3 investments activities took place in the blockchain industry this week, Jiemoquan got strategic investment, TokenHand got Pre-A round investment, Bibox got strategic investment.

Huobi Research

About Us:

Huobi Research was founded in April 2016 and started research and explorations in various aspects in Blockchain area since March 2018. We cover various fields such as Blockchain technology research, industry analysis, application innovation and economic model explorations. We aim to establish a research platform and to offer theoretical foundations as well as judgements of trends in Blockchain to the public, ultimately promoting the development of the Blockchain industry.

Huobi Research Weekly aims to provide participators of the cryptocurrency market with the most up-to-date and comprehensive database to help them facilitate decision-making process.

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